TLDR
- ASML shares advanced approximately 4% to $1,870.48 following an expanded High-NA EUV collaboration with Samsung.
- Samsung intends to deploy High-NA EUV technology in mass DRAM manufacturing by 2028.
- Intel has successfully processed more than one million wafers with ASML’s High-NA equipment.
- TSMC confirmed plans for large-scale High-NA deployment beginning in 2030, strengthening confidence in sustained demand.
- Analysts maintain a Strong Buy rating on ASML, with consensus price targets suggesting 29% potential upside.
Shares of ASML Holding climbed roughly 4% to $1,870.48 this week following news that the Netherlands-based lithography specialist expanded its partnership with Samsung focused on High-NA EUV capabilities.
The collaboration, formalized on September 8, also encompasses development of enlarged 12-inch photomasks. Samsung intends to integrate High-NA EUV systems into mass-production DRAM operations by 2028.
This development marks a significant milestone for ASML. Until recently, High-NA machinery was widely perceived as costly experimental infrastructure rather than viable production hardware.
The landscape is shifting. Intel has already run more than one million wafers through High-NA systems and reports that critical production benchmarks are being achieved.
Intel currently employs High-NA lithography on specific layers within its 18A manufacturing node. This kind of real-world validation from a leading customer provides crucial credibility for ASML.
Major Foundries Commit to Next-Gen Systems
TSMC is also moving forward with High-NA plans. The dominant contract chipmaker intends to deploy High-NA equipment for volume manufacturing beginning in 2030.
TSMC is collaborating with ASML on the development of those expanded photomasks as well. The objective is to improve scanner throughput while reducing per-chip manufacturing expenses.
As artificial intelligence chip architectures grow increasingly sophisticated, TSMC anticipates that additional process layers will necessitate High-NA capabilities. Every incremental layer translates into higher demand for ASML’s most expensive systems.
ASML is actively scaling to meet this demand. The company intends to increase its 2027 low-NA EUV output by 30%, rising from approximately 65 units in 2026.
By July, ASML’s 2027 EUV capacity was already nearly fully reserved. This provides a solid foundation for converting order backlog into revenue-generating shipments.
Geopolitical and Valuation Concerns Remain
China represents the primary uncertainty. According to a Reuters investigation, Chinese manufacturers have begun producing domestically developed immersion DUV lithography tools.
These systems remain significantly inferior to ASML’s offerings. However, continued progress could gradually reduce China’s reliance on imported lithography equipment.
This development carries weight because China accounted for roughly 16% of ASML’s revenue during the first half of 2026. Export restrictions already prevent ASML from selling EUV and certain advanced DUV systems to Chinese customers.
Valuation presents another consideration. ASML currently trades above 32 times forward earnings, offering limited margin for error.
The stock is also trading approximately 48% above a GF Value benchmark of around $1,270. Any setback in High-NA commercialization could trigger an outsized negative reaction.
Despite these risks, Wall Street remains optimistic. The consensus rating stands at Strong Buy, supported by six Buy recommendations issued over the past three months.
The mean analyst price target stands at $2,391.80, representing potential upside of approximately 29% from current trading levels. Neither specific order volumes nor delivery schedules were revealed in connection with the Samsung partnership announcement.
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